While he has maintained Intel’s domination of the PC world over his eight years in charge – Intel processors still feature in four out of every five PCs made – the PC market is expected to shrink this year and the company has failed to make significant inroads to date in the faster growing smartphone and tablet markets.

Its market capitalisation was overtaken this month for the first time by the leading wireless chipmaker Qualcomm, although it has about three times the revenues of its San Diego-based rival.

Intel shares are down 16 per cent so far this year, but were up nearly 1 per cent at $20.36 in morning trading in New York in a rising market.

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“We think Brian Krzanich is the favourite to fill the position among the internal candidates.”

Mr Krzanich is head of manufacturing and was made chief operating officer in January, a role occupied by Craig Barrett, Mr Otellini’s predecessor, before he took the top job. Intel said on Monday he was also being elevated to executive vice-president, the most senior role below the chief executive.

Head of fabs and COO. Makes sense given that's Intels overwhelming strength these days.

Also good news for Apple - there have been rumours that Intel might reluctantly be open to fabbing their ARM cores. Intel definitely have an interest in getting in to the post-PC market, and going with Apple would immediately stick em right in the middle of it. Apple also need a reliable fab partner with scale and strong confidentiality.

There couldn't be a more perfect match. It aligns perfectly with both of their biggest business plans. Two operations guys surely don't need a lot of pushing to make this happen.